Revisit stock price bubbles in the Covid-19 period

Further evidence from Taiwan’s and Mainland China’s tourism industries

Bibliographic Data

ID21689702
AuthorsMei-Chih Wang (0000-0003-0520-9316, Providence University, Taichung), Tsangyao Chang (0000-0003-1738-4621, Feng Chia University, Taichung), Jennifer C H Min (0000-0003-4014-2938, Ming Chuan University, Taipei, corresponding author)
Year2022
Volume28
Issue4
Pages951-960
Publication date2022-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueTourism Economics (JOURNAL)
Journal identifiersISSN: 1354-8166 • E-ISSN: 2044-0375
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/1354816620983954
OpenAlexW3119946049
LanguageEN
Citations received2
References cited10

This study applies both the sup augmented Dickey–Fuller (SADF) and the generalized SADF tests to investigate whether bubbles exist in the Taiwan’s and Mainland China’s tourism stock markets, focusing on the COVID-19 period. We use the weekly stock price index during the periods of January 4, 2000 to April 27, 2020 in Taiwan and August 13, 2007 to April 27, 2020 in Mainland China, respectively. Empirical results demonstrate the existence of bubbles in the Taiwan tourism stock market during some subsample periods, including the recent COVID-19 outbreak. In contrast with our findings concerning Taiwan, our empirical results found that the COVID-19 outbreak had no impact on the tourism stock market of Mainland China. Especially important, we found that the fourth bubble in the Taiwan stock market began from March 23, 2020, and grew gradually, bursting on March 30, 2020. Our results have important policy implications for investors who attempt to invest in the tourism stock market

Business · China · Economic geography · Economics · Economy · Financial economics · Geography · Mainland · Mainland China · Stock market · Tourism · COVID-19 Pandemic Impacts · Financial Markets and Investment Strategies · Market Dynamics and Volatility

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